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White text on a blue background, Navy Federal Credit Union
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Navy Federal Credit Union, home buying. Is buying right for you? Are you in the market for a new place to live and aren't sure whether you want to rent or buy?
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Two homes with two signs, one for rent and one for sale. A thought bubble with a question mark appears above a person's head.
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Let's look at the advantages of each.
Renting works well for people looking for flexibility, especially if you want to get to know the area before you commit. Or aren't sure you want to live in the same place for more than a year.
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A map shows icons for stores, restaurants, and gas stations around an icon of a person.
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Renting can also offer a more carefree lifestyle. You don't have to pay for repairs and maintenance. So if the roof leaks or the furnace needs work, that's up to the landlord, not you. And if you decide you'd like a new place, you won't have to sell a house before you can move.
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Dotted line leaps from one house to another.
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Buying is a great choice for people looking for stability. Ready to put down roots and stay in a neighborhood for a while? Buying gives you a place that's all your own. You can decorate it any way you want. And you might get back some of your costs through tax benefits.
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A clipboard with text, deductions. A check mark appears next to mortgage interest and property taxes.
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Plus a house is an investment. You'll still make monthly payments but you'll be building equity.
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Home value, $300,000, minus the loan balance of $230,000 equals equity of $70,000.
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That's the difference between what the home is worth and what you still owe.
Why is that important? Because as you pay off your mortgage your equity will increase. And if housing prices go up, it will increase even more. You can borrow against your equity for major expenses, like college tuition or remodeling, usually at a lower interest rate than other kinds of loans. Best of all, once you've paid off your mortgage, you own the house.
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Colorful rainbow arches over a house as fireworks burst in the sky.
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To rent or buy, flexibility versus stability, whichever you decide, have fun exploring your new neighborhood.
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Two homes on either side of a scale move up and down.
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Our members are the mission. Equal housing lender. For more information, visit makingcents.navyfederal.org.
This video is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation. NFCU copyright 2020. Federally insured by NCUA.